Ping An Insurance’s management revealed today on the group’s technology-themed investor open day research investment budget for the next decade. In order to support the group’s “financial + ecological” strategy and to promote future performance growth, the group expects that their research investment will reach RMB 100 billion (£11 billion) in the next decade. Specifically, Ping An will spend 1% of its annual revenue on research and development of financial technology and medical technology. Ping An Insurance has invested a total of £6 billion in research and investment in the past decade.
Ping An Insurance is China’s biggest insurer, with £90 billion in premium revenue. It reigns supreme as the industry No. 1 by profit and return on equity. Its market capitalisation, at $136 billion, is 74% larger than the country’s old standard, China Life, and 64% above the largest listed pan-Asia insurer, AIA. By this measure it is the world’s largest insurer except for Berkshire Hathaway.
To make sense of these startling numbers — and of Ping An’s rise to No. 10 on the Forbes Global 2000 list — look beyond the stodgy insurance business and into the realm of high technology, whose branches reach into every aspect of commerce in China and eventually show up in the mobile handsets of Chinese consumers.